E-mini S&P 500 Index (ES) Futures Technical Analysis – Pivot at 2821.00 Controlling Near-Term Direction

The E-mini S&P 500 Index is trading slightly better during the pre-market session on Tuesday. Volatility and volume are relatively low. Traders showed little reaction to the Bank of Japan’s decision to leave policy unchanged. Traders are now shifting their focus on Wednesday’s Fed monetary policy decision.

At 0514 GMT, September E-mini S&P 500 Index futures are trading 2806.50, up 3.25 or +0.12%.

Look for earnings and concerns over the US – China trade dispute to continue to drive the price action.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2792.50 will change the main trend to down. A move through 2849.50 will signal a resumption of the uptrend.

The short-term range is 2792.50 to 2849.50. Its 50% level or pivot is controlling the near-term direction of the market.

The main range is 2693.25 to 2849.50. If the trend changes to down then look for a break into its retracement zone at 2771.25 to 2755.25. Even with the trend down, buyers could show up on a test of this zone since it represents value.

Daily Swing Chart Technical Forecast

Based on the early trade, the nearest resistance is the short-term pivot at 2821.00. The closest support is the main bottom at 2792.50.

Overtaking 2821.00 and sustaining the move will signal the presence of buyers. If this creates enough upside momentum, we could see a surge toward 2849.50.

A sustained move under 2821.00 will indicate the presence of sellers. If they press the market through yesterday’s low at 2798.25 then we could see a spike into 2792.50.

Taking out 2792.50 will change the main trend to down. This is followed by a minor bottom at 2789.75. Look for an acceleration into a series of levels at 2771.25, 2765.75 and 2755.25 if the minor bottom is taken out with conviction.